OVERSOLD
Here we go again as we oscillate between overbought and oversold on what seems like a daily basis. Kind of funny but it is what it is, some recently found daily volatility within an overall tight trading range.
The VIX/VXO combo jumped 10% today and both are now overbought and sitting 5% above their respective 10 day SMA's. The 2 day RSI on SPX is also getting oversold at a reading under 20. Remember yesterday when the SPX 2 day RSI was 75 and both Vol indexes were 5% under their SMA's. Yes, all in a days work.
The safe haven continues to be the oil patch where dips continue to be bought which of course is the reverse of the easy money NAZ/tech trade where rallies are quickly sold.
Our friendly LiveOptionsTrader is looking for a bounce here as he notes a Fib retracement level. Not sure it is the right play as waiting for a bounce and shorting has been a sure thing.
The VIX/VXO combo jumped 10% today and both are now overbought and sitting 5% above their respective 10 day SMA's. The 2 day RSI on SPX is also getting oversold at a reading under 20. Remember yesterday when the SPX 2 day RSI was 75 and both Vol indexes were 5% under their SMA's. Yes, all in a days work.
The safe haven continues to be the oil patch where dips continue to be bought which of course is the reverse of the easy money NAZ/tech trade where rallies are quickly sold.
Our friendly LiveOptionsTrader is looking for a bounce here as he notes a Fib retracement level. Not sure it is the right play as waiting for a bounce and shorting has been a sure thing.
posted by DAVID at
3:59 PM
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